SAE Annual Report 2010 - 45

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) G. Investments (Continued)

The Finance Committee of the Board of Directors of SAE has documented an Investment Policy. Under the policy, the investments are held in three separate pools. The liquidity investment pool is held in short-term investments with the primary goal of safety of principal and liquidity and is primarily utilized to meet the operating cash needs of SAE. The general investment pool is held for longer term objectives of SAE and, accordingly, the investments are managed to optimize return over a ten-year period. The funds in this pool are held for general purposes such as financial support for new projects, additions and replacement of property and equipment, and any other expected or unexpected events that require financial support. The Foundation investment pool is held to provide resources needed to help support SAE programs, and its objective is to provide modest growth of the fund after spending and inflation. Investment vehicles used to achieve the investment goals over time are:   Liquidity pool - cash and cash equivalents (100%). General and Foundation pools - equities and fixed income. The strategic allocation is 70% equities and 30% fixed income.

SAE’s investments are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with these investments and the level of uncertainty related to changes in the value of these investments, it is at least reasonably possible that changes in the near term could materially affect the amounts reported in the financial statements. SAE records returns on its liquidity investment fund in operating activities. These returns are included in the accompanying statements of activities as part of other products and services. All other investment activity is reflected as a component of nonoperating activities. H. Inventories

Inventories and supplies are stated at the lower of cost (determined on the first-in, firstout or average cost method) or market.

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SAE Annual Report 2010

Table of Contents for the Digital Edition of SAE Annual Report 2010

SAE Annual Report 2010
Contents
Executive Message
Sectors – Aerospace, Automotive and Commercial Vehicle
Membership
Aerospace Standards
Ground Vehicle Standards
Engineering Events and Meetings
Electronic Publishing
Magazines and Books
Professional Development
Collegiate Design Series
SAE Foundation
Performance Review Institute (PRI)
Globally Relevant
SAE International Financials
Supplemental Information
SAE Annual Report 2010 - Intro1
SAE Annual Report 2010 - Intro2
SAE Annual Report 2010 - SAE Annual Report 2010
SAE Annual Report 2010 - Contents
SAE Annual Report 2010 - Executive Message
SAE Annual Report 2010 - 3
SAE Annual Report 2010 - Sectors – Aerospace, Automotive and Commercial Vehicle
SAE Annual Report 2010 - 5
SAE Annual Report 2010 - 6
SAE Annual Report 2010 - 7
SAE Annual Report 2010 - 8
SAE Annual Report 2010 - 9
SAE Annual Report 2010 - Membership
SAE Annual Report 2010 - 11
SAE Annual Report 2010 - Aerospace Standards
SAE Annual Report 2010 - 13
SAE Annual Report 2010 - Ground Vehicle Standards
SAE Annual Report 2010 - 15
SAE Annual Report 2010 - Engineering Events and Meetings
SAE Annual Report 2010 - Electronic Publishing
SAE Annual Report 2010 - Magazines and Books
SAE Annual Report 2010 - 19
SAE Annual Report 2010 - Professional Development
SAE Annual Report 2010 - Collegiate Design Series
SAE Annual Report 2010 - SAE Foundation
SAE Annual Report 2010 - 23
SAE Annual Report 2010 - Performance Review Institute (PRI)
SAE Annual Report 2010 - Globally Relevant
SAE Annual Report 2010 - SAE International Financials
SAE Annual Report 2010 - 27
SAE Annual Report 2010 - 28
SAE Annual Report 2010 - 29
SAE Annual Report 2010 - 30
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SAE Annual Report 2010 - Supplemental Information
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